To have your activity qualify as material participation, you must meet one of the following tests:-Work more than 500 hours in the activity (a married couple can count the involvement of both spouses to meet this test)-Do substantially all the work in the activity-Work more than 100 hours in the activity, and no one else worked more than the taxpayer (including non-owners or employees)-The activity is a significant participation activity and your total time in all significant participation activities exceeds 500 hours-You materially participated in the activity in any five of the prior ten years-You materially participated in a personal service activity for any three prior years-Based on all facts and circumstances, you participate for more than 100 hours in the activity on a regular, continuous or substantial basis during the yearPractically speaking, this means you’re doing the work on your rental properties rather than hiring a property manager.

Based on comps and speaking with realtors we figure I can sell my home and after paying off my mortgage and selling expenses I could net approx 750-900k, depending upon the sale price of course.

Based on your opinion, would DFW area also be a great starting point in Texas?

I’m based in Houston, Tx.

It sounds like you have equity in your property based on your numbers provided.

Sounds like you have some contacts, but I would make sure you really have a strong why behind getting ready now.

Determine your investment criteria based on your objectives, risk tolerance, target market, property type, cash flow needs, and desired returns.Gather a solid team of experts such as real estate agents, lenders, attorneys, contractors, property managers, and accountants to assist you on your real estate journey.

.- rentals do not go under an S-corp, which is why a separate PM company was suggested- S-corp technique on reducing SE tax is both tricky and costly, and you cannot set up your salary arbitrarily- you can only base your 401k on the part that IS subject to SE tax- you usually cannot generate enough "earned income" from this 2-companies setup to make it worthwhile for 401kSee, it is not simple.

@Jamie Bateman used a podio based system.

Based upon the dates in the pattern, this “lien” probably fell in the “gap” between commitment date and closing date.